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Ise1 406-A Ram
Ise1 406-A Ram
Date: 09/03/2022
* Required
1. Email *
Basic Information
3. Branch
MBA
BBA
4. Class
FY
SY
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3/8/22, 12:04 PM 406 A International Financial Management
5. Roll No.
Q. 1
short term
long term
medium term
Q. 2
7. _____________ equity markets are an important platform for global finance 1 point
Foreign
Forex
Euro
International
Q. 3
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3/8/22, 12:04 PM 406 A International Financial Management
Dividends from a foreign subsidiary are tax exempt in the United States.
Q. 4
gold standard
Q. 5
____________
Extensive demand
Extensive supply
External demand
External supply
Q. 6
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Philosophy
Psychology
Economics
Politics
Q. 7
Q. 8
Q. 9
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3/8/22, 12:04 PM 406 A International Financial Management
14. Which of the following is not normally a responsibility of the treasurer of 1 point
the modern corporation but rather the controller?
Asset management.
Investment management.
Financial management.
Q. 10
15. Which of the following does not form part of current account under 1 point
balance of payments?
Q. 11
Management of Pension
Management of Credit
Q. 12
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Wealth Maximization
Sales Maximization
Profit Maximization
Assets maximization
Q. 13
18. International finance mainly discusses the issues related with monetary 1 point
interactions of at least__________.
one country
five countries
Q. 14
19. Interest rate swaps are usually possible because international financial 1 point
Efficient
Perfect
Imperfect
Both a & b
Q. 15
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3/8/22, 12:04 PM 406 A International Financial Management
20. ____________ to promote domestic investment and growth through capital 1 point
Market.
International Finance
World Bank
WTO
IFC
Q. 16
21. The basic function of foreign exchange market is to facilitate the 1 point
Conversion
Conservation
Concentration
Consolation
Q. 17
22. A simultaneous purchase and sale of foreign exchange for two different 1 point
dates is called_____
Currency devalue
Currency swap
Currency valuation
Currency exchange
Q. 18
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3/8/22, 12:04 PM 406 A International Financial Management
23. Given a home country and a foreign country, purchasing power parity 1 point
suggests that:
The home currency will appreciate if the current home inflation rate exceeds the
current foreign inflation rate;
The home currency will depreciate if the current home interest rate exceeds the
current foreign interest rate;
The home currency will depreciate if the current home inflation rate exceeds the
current foreign inflation rate.
The home currency will depreciate if the current home inflation rate exceeds the
current foreign interest rate;
Q. 19
Q. 20
country risk
financial risk
currency risk
liquidity risk
Q. 21
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purchasing power
Telegraphic
Courier
Mobile
Q. 22
Means that delivery and payment must be made within one business day
(USA/Canada) or two business days after the transaction date
Sets the future date when delivery of a currency must be made at an unknown spot
exchange rate
Q. 23
Q. 24
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3/8/22, 12:04 PM 406 A International Financial Management
System
Place
None of above
Q. 25
30. If portable disk players made in India are imported into the United States, 1 point
Dollars
Rupees
Q. 26
31. ___________ attempt to profit from rising and falling prices 1 point
Arbitrageur
Hedger
Speculators
Manufacturer
Q. 27
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3/8/22, 12:04 PM 406 A International Financial Management
32. The date of settlement for a foreign exchange transaction is referred to 1 point
as:
Clearing date
Swap date
Maturity date
Value date
Q. 28
SWIFT
CHIP
CHAP
SFMS
Q. 29
our
theirs
yours
my
Q. 30
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3/8/22, 12:04 PM 406 A International Financial Management
Future Price
Forward Price
Swap Price
Q. 31
36. Which of the following payment system location does not match 1 point
INFINET – India
Q. 32
37. In the foreign exchange market, the ________ of one country is traded for 1 point
currency; currency
currency; goods
goods; goods
Q. 33
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3/8/22, 12:04 PM 406 A International Financial Management
...domestic real interest rates will tend to equal foreign real interest rates.
...the expected exchange rate depreciation of the domestic currency is equal to the
future inflation differential (foreign minus domestic inflation).
...the difference between the bids-ask spread for an exchange rate is equal to the
future inflation differential (foreign minus domestic inflation).
Q. 34
Q. 35
40. Differences in nominal interest rates are removed in exchange rate is 1 point
Fisher Effect
Leontief Paradox.
Q. 36
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3/8/22, 12:04 PM 406 A International Financial Management
Interest rates should change by an equal amount but in the opposite direction to
the difference in inflation rates between two countries
The difference in interest rates in different currencies for securities of similar risk
and maturity should be consistent with the forward rate discount or premium for the
foreign currency
The interest rates between two countries start in equilibrium, any change in the
differential rate of inflation between the two countries tends to be offset over the
longterm by an equal but opposite change in the spot exchange rate
In the long run real interest rate between two countries will be equal
Q. 37
RBI
FEDAI
Q. 38
Q. 39
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3/8/22, 12:04 PM 406 A International Financial Management
44. Exchange rate entail delivery of trade currency within two business days 1 point
known as ___________ *
Forward rate
Future rate
Spot rate
Bid rate
Q. 40
45. The statutory basis for administration of foreign exchange in India is? 1 point
Q. 41
46. A firm that buys foreign exchange in order to take advantage of higher 1 point
foreign interest rates is _______
Speculating
Q. 42
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3/8/22, 12:04 PM 406 A International Financial Management
47. An account which is held within a domestic country by a foreign bank, in 1 point
the currency of domestic country _________________
Loro
Nostro
Vostro
SWIFT
Q. 43
48. India is facing continuous deficit in its balance of payments. In the foreign 1 point
Depreciate
Appreciate
Q. 44
49. Which of the following refers to an account that a bank holds in a foreign 1 point
Nostro Account
Loro Account
Vostro Account
None
Q. 45
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3/8/22, 12:04 PM 406 A International Financial Management
50. Which of the following institutions is the most important participant in 1 point
foreign currency market?
A retail customer
A commercial bank
A central bank
Q. 46
fluctuate to equate the quantity of foreign exchange demanded with the quantity
supplied
Q. 47
52. Currently the largest foreign exchange market in the world is 1 point
____________-.
New York
Tokyo
Frankfurt
London
Q. 48
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3/8/22, 12:04 PM 406 A International Financial Management
Q. 49
54. Type of risk in which value of liabilities and assets is affected by exchange 1 point
rate is classified as
economic rates
selling rate
buying rates
Q. 50
The futures market is mainly used by hedgers while the forward market is mainly
used for speculating.
The futures market and the forward market are mainly used for hedging.
The futures market is mainly used by speculators while the forward market is
mainly used for hedging.
The futures market and the forward market are mainly used for speculating
Q. 51
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3/8/22, 12:04 PM 406 A International Financial Management
56. Which of the following may be participants in the foreign exchange 1 point
markets?
Q. 52
57. If purchasing power parity were to hold even in the short run, then: 1 point
Q. 53
58. Under fixed exchange rate system , the currency rate in the market is 1 point
maintained through
Official intervention
Q. 54
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3/8/22, 12:04 PM 406 A International Financial Management
59. Which of the methods below may be viewed as most effective in 1 point
protecting against economic exposure?
Geographical diversification
Q. 55
Q. 56
Forward
Futures
Options
Swaps
Q. 57
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3/8/22, 12:04 PM 406 A International Financial Management
Fourange
Barter
Forex
Exforeign
Q. 58
63. The responsibility for administration of FEMA is vested with ________ 1 point
Central government
State government
RBI
National banks
Q. 59
64. Which of the following is not a type of foreign exchange exposure? 1 point
Tax exposure
Translation exposure
Transaction exposure
Economic exposure
Q. 60
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3/8/22, 12:04 PM 406 A International Financial Management
65. Which of the following is not an interest rate derivative used for interest 1 point
rate management?
Swap
Cap
Floor
Forms
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